• Relationship with Customers
• Relationship with Regional Communities

• Relationship with Employees
• Relationship with Business Partners

• Relationship with Shareholders and Investors
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Relationship with Customers

For the Healthy Development of Young People

Compliance with the CERO Rating System and Endorsement of Guidelines

The NPO Computer Entertainment Rating Organization (CERO) was created to provide age-appropriate ratings for video games. Capcom complies with the CERO rating system and rules.

The rating system is an initiative for the healthy development of young people that calls for voluntary restrictions on home video game content and sales methods to limit access by young people to sexual and violent content. In addition, recent home video game consoles include a parental control function that enables parents to limit the online purchase and use of certain games according to their ratings.

Community Building Support for Senior Citizens

Regular Video Game Arcade Tours

Today, amusement facilities are becoming increasingly popular among retired senior citizens as spaces for communication with other people. Since 2012, Capcom has held video game arcade tours on long public holidays and Respect-for-the-Aged Day for senior citizens where they can try out coin-operated games and crane games so that more people can make use of such facilities.In addition, as part of efforts to create arcades where senior citizens can comfortably enjoy themselves, since 2012 Capcom has encouraged arcade staff to get the Service Assistant certification. Currently, 27 staff have received this certification.

Contributions to Regional Revitalization

Social Contribution Activities Using Popular Games’ Appeal and Recognition

Utilizing the power of our content to capture the attention of people, Capcom is engaged in the following four regional revitalization activities: 1) Economic promotion that supports the local tourism industries; 2) cultural promotion that supports education concerning local history and culture; 3) the improvement of public order through coordination with the police; and 4) raising awareness about voting in elections in coordination with the Committee for Election Administration.

In 2016 Capcom provided support for a digital stamp rally in Kofu (Yamanashi Prefecture), a city with which Capcom entered into a Comprehensive Agreement to Promote Vitalization of the Local Economy. The rally used Capcom’s characters while utilizing the city’s free Wi-Fi, and was part of Capcom’s efforts to help achieve regional development by 2019. We also committed energy to being a force for regional revitalization. In Wakayama Prefecture, which is working to boost tourism while drawing inspiration from a historical drama series on NHK TV, we provided a character for inclusion in a pamphlet containing Wakayama sightseeing and gourmet dining information. We also helped to develop a sightseeing guide app using a Capcom character in Hamamatsu, Shizuoka Prefecture, among other efforts. In October 2016, Monster Hunter series characters Felyne and Melynx were used for the first time in materials to promote efforts by the Osaka Prefectural Police Department to prevent the theft of valuables from unattended cars. Non-slip vehicle mats featuring the characters were distributed to promote the campaign.

Educational Assistance as a Game Company

Company Visits for Children and On-site Classes at Schools

Video games are a comparatively new cultural phenomenon about which there is little academic research. Rather than examining the educational aspects, discussions tend to focus on the detrimental effects of violent content. For example, some local municipalities have designated certain games to be harmful to the healthy development of young people. At the same time, the idea of a future career as a video game creator is very popular among children, and some schools have even begun to incorporate handheld video game consoles into the classroom in recent years.

As part of its social responsibility (CSR) efforts as a video game software producer and based around a desire to promote understanding in society of video games, Capcom accepts student visits to its offices, with a focus on elementary and junior high school students, and also actively conducts on-site classes at schools. At these events, Capcom conducts a program with two sessions: one is a career education support session which introduces the work done in a game software company and the difficulty and rewards of that work, and the other is a game literacy education support session which helps students use their own judgement to establish a healthy relationship with games. These programs have in turn been well-received in educational environments. Capcom has also incorporated opinions from educators to improve its educational efforts. In fiscal 2011, Capcom launched its second educational program, focused on the educational theme of career education support. In fiscal 2013, Capcom started a new class program on work and mathematics targeted towards elementary and junior high school students to help prevent children from losing interest in math, a challenge in recent years.

As a result of these efforts, Capcom has welcomed 2,722 children as part of 343 different field trips into its offices (as of the end of March 2017). Capcom has also held 119 on-site classes for 10,948 students at schools (as of March 2017) such as Ritsumeikan Primary School in Kyoto.

Promotion of Diversity

Initiatives Aimed at Promoting an Environment for Women’s Success and Proactively Hiring Non-Japanese

In terms of the environment for women’s success, we introduced systems enabling women to take a leave of absence before and after giving birth, childcare leave and shortened working hours, and promote their use throughout the company. In fiscal 2016, 26 employees took childcare leave, three of whom were men, and 100% of women took childcare leave (fiscal 2015: 0 men and 100% of 24 women took leave).
A high percentage of women returned to work afterwards: 22 returned in fiscal 2016 — 95.6% if those still on leave are excluded. This is an increase over last fiscal year (94.4%, or 17 women, returned to work in fiscal 2015). As a result, despite it being said that Japan’s gaming industry is generally dominated by men, women account for roughly 20% of Capcom’s workforce, and 25 (11.4%) of Capcom’s managers are women. Furthermore, in accordance with the execution of the Act on Promotion of Women’s Participation and Advancement in the Workplace, in 2016 we formulated the General Employer Action Plan which seeks to achieve two things: (1) having women comprise at least 20% of all regular employees, and (2) having women comprise at least 15% of managers.

As a further measure to maximize female workplace participation, we opened "Capcom Juku" as an internal daycare facility in April 2017. In recognition of Capcom’s efforts toward improving the workplace environment for women, since 2014 we have earned the "Kurumin" mark, the symbol of a "company supporting childcare," from the Ministry of Health, Labor and Welfare. In terms of the proactive employment of non-Japanese citizens, Capcom is making efforts to strengthen overseas expansion capabilities including creating an English hiring website. We currently employ 99 non-Japanese workers (representing 4.3% of our employees). Going forward, we will create a system for improving motivation in an attempt to increase the ratio of foreign employees, including support for career advancement and the promotion of non-Japanese individuals to management positions.

Delivering New Games Developed Primarily by Women

Fiscal year 2016 saw the launch of Toraware no Paruma, a romance game for women developed primarily by female Capcom employees. Chosen from among 150 proposals solicited within the company, the title carries a distinctiveness among our games, which are primarily action-orientated games for men. It was ultimately selected for development by virtue of tenacious presentations given by female Capcom staff. The game is imbued with the team’s unique sensibilities, which can be seen in things like the characters’ 3D models and gestures. It also captured the top spot in the paid App Store’s app ranking, evidence of the high acclaim it received from many users as a new Capcom IP.

Toraware no Paruma

Providing Career Paths for Employees and Improving the Work Environment

Company-wide Training and Level-based Training

To provide career paths and improve the work environment, Capcom offers the following training.

Proactive personnel hiring

Boosting Jobs by Hiring 100 or More New Graduates Every Year

With a view to developing ever higher quality game software, Capcom places an emphasis on in-house development. We are hiring at least 100 new graduates every year to expand development resources from 1,500 development staff members in fiscal 2011 to 2,500 in fiscal 2021, and thereby contribute to job growth. We also help developers find greater satisfaction in their work by providing a state-of-the-art game development environment that features a 3D scanning studio and Foley stage.

[Management Strategy]
The Head of Development Discusses Development Policies and Foundation Building
-People and Technology: Building Up the Dual Foundations Essential to Game Creation

Corporate Governance and CSR

Action Criteria and Compliance-related Employee Education

The Capcom Code of Conduct calls for "free competition and fair trade," "respect for human rights and individuality and the prohibition of discrimination" and "environmental conservation and protection." To ensure an understanding of these concepts, we created the Capcom Group Code of Conduct Handbook, which is available on the company intranet and contains illustrated case studies in an easily understandable Q&A format.

We also conduct e-learning compliance training and Personal Information Protection Act compliance training for all employees.

Action criteria and compliance are the lynchpin of corporate governance and the foundation of our CSR. Capcom will continue to instill this understanding in all its officers and employees.

Occupational Health and Safety

Monthly Health and Safety Committee Meetings in Order to Build a Comfortable Work Environment

Monthly Health and Safety Committee meetings include the attendance of an employee representative, an observer and a company representative. Participants discuss employee overtime, workload optimization workplace injuries and the state of each business site. This helps make our workplaces more pleasant.

Promoting better utilization of paid leave

Establishment of the Paid Leave Promotion Day

Capcom has established a Paid Leave Promotion Day. This company-led effort to encourage the taking of long-term paid leave promotes richer private lives for our employees. This initiative has helped us beat the paid leave utilization target (70% of annual paid leave taken by all employees by fiscal 2020) set by the government.

Relationship with Business Partners

Basic Policies Regarding Business Transactions

Promotion of Fair Business Transactions Based on Regulations

Capcom has established its own "Regulations Concerning the Management of Purchasing Transactions" and "Regulations Concerning the Management of Outsourced Transactions" in order to carry out free competition and fair business transactions. Capcom fairly evaluates conditions such as capability and cost to select suppliers and outsourcers. In addition, for business transactions with specified involved parties such as subsidiaries, Capcom compares such transactions with standard conditions and does not engage in those which would be disadvantageous to Capcom or which would unfairly profit the specified involved party.

Relationship with Shareholders and Investors

Initiatives for the General Shareholders’ Meeting

Making Shareholders’ Meetings Lively and Facilitating the Exercise of Voting Rights

To ensure our General Shareholders’ Meetings are lively, we hold our meeting about 10 days before the period when most Japanese companies typically hold their meetings in an attempt to encourage the attendance of as many shareholders as possible.

Also, voting rights can be exercised via computer, smartphone, mobile phone and the Internet. In addition, we have participated from an early stage in a platform for the digital exercise of voting rights, so institutional investors are ensured a sufficient amount of time to consider proposals starting on the day the convocation notices are distributed. We also post convocation notices in English on our corporate website to promote the exercise of voting rights by shareholders in Japan and overseas.

Basic Policies Regarding IR Activities

1. Disclosure Policies

Capcom believes that the timely and appropriate disclosure of information is the duty of every listed company, and that accountability to our shareholders and investors is indispensable from the perspective of corporate governance.

To this end, Capcom is promoting highly transparent management via the implementation of a basic policy for IR activities which involves (1) the establishment of a responsible investor relations framework, (2) the thorough disclosure of information, and (3) the creation of a system for the timely disclosure of information.

2. Disclosure Criteria

Capcom provides timely disclosure in accordance with the Securities and Exchange Law and other regulations including the "Rules on Timely Disclosure of Corporate Information" by Issuer of Listed Security (hereinafter Timely Disclosure Rules) stipulated by the Financial Instruments and Exchange Act and the Tokyo Stock Exchange.

It is our policy to disclose as much information as possible, including the disclosure of information not required by the Timely Disclosure Rules and other regulations, to accommodate our investors’ needs. We also disclose information through our corporate website in an attempt to provide quick and fair disclosure. Shareholders are informed of operating results and business conditions through shareholder letters.

3. Quiet Period

To prevent the unauthorized disclosure of quarterly earnings information prior to official announcements, Capcom has established a quiet period starting the day following the end of a fiscal period and ending on the day that financial information for that period is announced. During this period, we refuse all inquirie relating to our business performance. However, if significant changes to our earnings outlook are anticipated during the quiet period, we will disclose this information pursuant to the Timely Disclosure Rules and other regulations.

Third-Party Assessment of IR Activities

High Praise for Proactive IR Initiatives

In recognition of our ongoing pursuit of timely and appropriate information disclosure, our IR activities and various IR tools have received a number of awards from third-party organizations. In addition to receiving the Excellence Prize at the Nikkei Annual Report Awards 2016 in the fiscal year ended March 2017, our IR website was selected by Daiwa Investor Relations for the 2016 Internet IR Grand Prize and we ranked first overall in the Fiscal 2016 Listed Company Website Quality Ranking. With an awareness of the importance of accountability, we will continue our efforts to earn the trust of investors and provide timely disclosure.

Making Use of Shareholder and Investor Opinions

Reflecting Results of Dialogues with Investors and Analysts in Management

Through meetings with investors and analysts, Capcom’s IR Department attempts to promote an understanding of management policies, strategies and future outlook with them. Furthermore, their opinions are gathered and provided to management, and are utilized for corporate management going forward. As a company based in Osaka, proactive IR meetings with these parties enables us to minimize asymmetric information as we strive to achieve appropriate corporate value. This fiscal year, meetings with investors in Japan and overseas and conference calls amounted to 362 points of contact with investors.

In fiscal 2016, we set up a small meeting between external directors and investors where candid discussions were held concerning the necessity of transitioning to being a company with an audit and supervisory committee, the role of outside directors under the new system, and other matters concerning governance. We also had interested investors experience our virtual reality technologies during individual meetings to give them a better idea of Capcom’s technical prowess. Furthermore, in contrast to the kinds of briefings that are often held in Tokyo, we held an online individual investor briefing to allow all investors to take part—regardless of where they live—as one of a variety of new pursuits informed by sock market views and demands. In addition, Capcom conducts a perception gap study every year targeting investors and analysts in Japan and overseas. Being aware of investor perception gaps with regard to management objectives, business strategy and shareholder’s return enables us to fine-tune corporate management and IR activities. Questionnaires are also given to attendees at our semiannual Presentation of Financial Results and individual investor briefing sessions, allowing us to make proactive use of market opinions as one criterion in management decisions. Specific examples of how this information is used include: (1) medium-term business goal and KPI revisions, (2) enhanced business strategies, (3) shareholder return methods and levels, and (4) reviews of the content and timing of information disclosures.

IR Activities on Our Website

Utilizing a Website That Anyone Can Access

Since 2001, Capcom has made proactive use of its corporate website as a tool for disseminating information pertaining to IR activities. The main reasons for this are to ensure fairness for a wide range of stakeholders, including investors, analysts, the mass media and job-seekers, and because it easily ensures information is available for inspection immediately in about 200 countries worldwide. Capcom’s corporate website is also positioned as our most cost-effective tool.

IR Team

Full-Time Staff Engaged in a Wide Variety of Activities

Capcom IR activities are conducted by four full-time staff members in addition to the chairman, the president, and the director overseeing IR for shareholders and investors in Japan and overseas. For earnings information and other IR-related inquiries, please use the contact information below.